You did the work. You delivered the goods. You held up your end of the deal — and now the other side isn’t paying. Whether it’s an unpaid invoice, a former business partner who walked off with your deposit, or a client who has gone silent on a $50,000 balance, the experience is the same: frustrating, costly, and personal.

Step 1: Document Everything Before You Do Anything Else

Before you send a single text message or make a single phone call, gather your documentation. This means the original contract or agreement (signed or unsigned), every invoice you sent, every email or text message about the debt, any partial payments received, and any acknowledgment by the debtor that they owe you the money. In New York courts, the strength of your paper trail is often the difference between a quick judgment and a drawn-out fight.

If your agreement was verbal — no written contract — document everything you can remember about what was agreed, when, and who witnessed it. Verbal agreements are enforceable in New York up to the Statute of Frauds limits, but they are significantly harder to prove without supporting evidence.

Step 2: Assess Whether the Debtor Is Actually Collectible

This is the step most people skip — and it is the most important one. Before spending money on a lawsuit, you need to think honestly about whether the debtor has assets you can actually reach. A judgment against an empty LLC or a debtor who has moved assets out of their name is often worse than useless — it costs you money to obtain and collects nothing. At Aryeh Law Group, the first thing we do in any collections matter is assess collectability. We look at public records, business filings, property ownership, and any known business activity.

Step 3: Send a Formal Demand Letter Through an Attorney

Before filing a lawsuit in Nassau County or any New York court, sending a formal demand letter from an attorney is almost always the right first step. A letter from a law firm signals that you are serious, that you have counsel, and that litigation is coming if payment is not made. In our experience, a well-drafted demand letter resolves a meaningful percentage of collection matters without any litigation at all.

Step 4: File Suit in the Right Court

If the demand letter does not produce payment, the next step is filing a lawsuit. In New York, which court you file in depends on the amount you are owed. Under $10,000: Small Claims Court. $10,001 to $25,000: Nassau County District Court or NYC Civil Court. Over $25,000: Nassau County Supreme Court, Kings County Supreme Court, or another appropriate Supreme Court. Filing in the right court matters enormously.

Step 5: Move for Default or Summary Judgment Quickly

Once a lawsuit is filed, the fastest path to a judgment is through a motion for default judgment (if the defendant fails to appear) or a motion for summary judgment (if the facts are undisputed). At Aryeh Law Group, we aggressively pursue both. We push for resolution as quickly as the courts allow, because every month of litigation is a month the debtor has to move or hide their assets.

Step 6: From Judgment to Collection

Getting a judgment is just the beginning. Under CPLR Article 52, New York provides a powerful arsenal of enforcement tools, including restraining notices to freeze bank accounts, bank levies to seize funds with the Sheriff, income executions to garnish wages, and information subpoenas to require debtors to disclose their assets under oath. We specialize in exactly this phase. We issue restraining notices immediately upon entry of judgment, coordinate with the Nassau County and Kings County Sheriff for bank levies, and pursue every asset avenue available — including personal guarantors, fraudulent transfers, and alter ego claims. We do not stop when the judgment is entered. We stop when you are paid.

The Statute of Limitations Warning

In New York, most contract-based debt claims must be filed within six years of the date the debt became due. Once that deadline passes, your claim is generally barred forever. If you are approaching the five or six year mark, contact an attorney immediately.

You went through the litigation. You prevailed. The court entered judgment in your favor. And then — nothing. The debtor is not paying. This is the moment most creditors discover a hard truth: a court judgment is not money. It is a legal right to collect money. Converting that right into actual cash requires a second phase of legal work that is, in many ways, more demanding than the litigation itself.

The Foundation: What a Money Judgment Actually Is

When a New York court enters a money judgment in your favor, it creates a legal obligation for the debtor to pay you the amount specified, plus statutory post-judgment interest at nine percent per year under CPLR 5004. It also creates a lien against any real property the debtor owns in any county where you docket the judgment. But the judgment itself does not automatically transfer money to you. You must actively enforce it.

Tool #1: The Information Subpoena

Before you can seize anything, you need to know what the debtor has. An information subpoena requires the debtor (or a third party with knowledge of the debtor’s assets) to answer written questions about the debtor’s financial affairs under oath. We routinely serve information subpoenas on debtors, their banks, their employers, their accountants, and their business partners. Failure to respond can be punished as contempt of court.

Tool #2: The Restraining Notice

Once we know where the debtor banks, our next step is usually the restraining notice. Served directly on the bank, a restraining notice legally prohibits the institution from releasing any of the debtor’s funds — effectively freezing the account. Restraining notices can be served immediately upon entry of judgment. We use them aggressively and strategically, often serving multiple banks simultaneously.

Tool #3: The Bank Levy

A restraining notice freezes the money. A bank levy takes it. To execute a bank levy in Nassau County or Kings County, we coordinate with the Sheriff’s office, which physically seizes the funds held at the bank and delivers them to you as the judgment creditor. The process requires precise timing and coordination, which we manage entirely on your behalf.

Tool #4: Income Execution (Wage Garnishment)

If the debtor is employed, we can garnish their wages through an income execution. Under CPLR 5231, we can collect up to 10% of the debtor’s gross wages on a continuing basis until the judgment is satisfied. This is a powerful tool for long-term collection against debtors with income but limited liquid assets.

Tool #5: Turnover Proceedings

A turnover proceeding compels a third party — such as a bank, a business partner, or a broker holding assets belonging to the debtor — to turn those assets over to you as the judgment creditor. This is particularly useful when a debtor has assets held in trust, in partnership accounts, or in entities they control but do not formally own.

When the Debtor Has Hidden Their Assets

Asset concealment is the most common problem we encounter in post-judgment enforcement. Debtors transfer property to spouses, create shell LLCs, run personal expenses through business accounts, and take cash payments off the books. New York law provides powerful remedies: the Uniform Voidable Transactions Act lets us unwind fraudulent transfers, while alter ego claims can pierce the corporate veil to reach individual owners. These are the cases where our expertise makes the greatest difference.

You open the door. Someone hands you a stack of papers. Whatever form it takes, the experience of being served with a lawsuit is jarring — and the next 72 hours can determine whether your defense is strong or severely compromised before you ever speak to an attorney.

First: Do Not Panic. Do Not Ignore It.

These are the two most common reactions, and both are costly. Panic leads people to call the plaintiff directly, make admissions, or agree to things they later regret. Ignoring the papers leads to default judgments. Neither outcome serves you. You have time — not unlimited time, but enough to act thoughtfully if you move quickly.

Understand What You Were Just Served With

New York lawsuits typically begin with a Summons and Complaint. The Summons tells you who is suing you, in which court, and most critically, your deadline to respond. Read both documents carefully and note the deadline. If it is not stated clearly, assume the default: in New York, you generally have 20 days to respond if you were personally served, or 30 days if you were served by other means.

The Deadline Is Not Negotiable — Until It Is

Missing your answer deadline is one of the most expensive mistakes you can make in New York litigation. Once the deadline passes, the plaintiff can apply for a default judgment — a judgment entered against you without any hearing, without any opportunity to defend yourself, and enforceable against your bank accounts, wages, and property. Default judgments are difficult and expensive to vacate. That said, attorneys routinely stipulate to extend time to answer — but only if you contact opposing counsel before the deadline passes.

Hours 1-24: Gather and Preserve

Make copies of every document you were served with and put the originals somewhere safe. Write down exactly when, where, and how you were served. Do not respond to the plaintiff, their attorney, or anyone connected to the lawsuit until you have spoken with your own attorney. Begin gathering documents relevant to the dispute: contracts, emails, text messages, invoices, payment records. Do not delete anything. Destruction of relevant documents after litigation is commenced can result in severe sanctions.

Hours 24-48: Contact an Attorney

This is your most important action. Contact a commercial litigation attorney in New York as quickly as possible. Have the summons and complaint in front of you and be ready to give the attorney the case name, court, index number, date of service, and deadline to answer. Do not wait to see if the problem goes away. It will not.

Hours 48-72: Begin the Defense Assessment

Once you have retained counsel, the defense assessment begins. Your attorney will analyze the complaint to identify the legal claims asserted, evaluate available defenses including statute of limitations, lack of standing, and prior breach, assess whether the complaint should be answered or challenged by a motion to dismiss, and determine whether early settlement makes strategic sense. A strong defense is built from day one, not the day before trial.

Special Situations: When You Need to Act Within Hours

If you receive a bank levy notice indicating your accounts have already been restrained, an Order to Show Cause with an imminent return date, or any emergency injunctive order, you must contact an attorney immediately. These situations have deadlines measured in hours, not weeks, and missing them can cause irreversible harm. Call (646) 504-8170 immediately if you are facing an emergency enforcement action.

You have a judgment. The debtor owes you money — the court said so. But when you go to collect, the picture looks suspicious. The LLC that owed you money has been dissolved. The debtor’s house was transferred to their spouse six months before the judgment. The business assets were sold to a cousin’s company for a dollar. If this sounds familiar, you may be dealing with a fraudulent conveyance — and New York law gives you powerful tools to unwind it.

What Is a Fraudulent Conveyance?

In New York, fraudulent conveyances (now called “voidable transactions” under the Uniform Voidable Transactions Act, Debtor & Creditor Law §§ 270-281) are transfers of assets made by a debtor in a way that harms their creditors. The law recognizes two types of voidable transfers.

The first is actual fraud: a transfer made with the actual intent to hinder, delay, or defraud any creditor. Courts identify actual fraud using the “badges of fraud” — factors including transfers to insiders, transfers made while the debtor was being sued, transfers that left the debtor insolvent, and transfers for little or no consideration.

The second is constructive fraud: a transfer made for less than reasonably equivalent value at a time when the debtor was insolvent or about to become insolvent. Crucially, constructive fraud does not require proof of intent. If the debtor transferred a $500,000 property to their spouse for one dollar while owing you money, the intent is irrelevant — the transfer is voidable regardless.

The Remedy: Unwinding the Transfer

When we prove a voidable transaction, the court can undo the transfer — returning the asset to the debtor’s estate where it becomes available to satisfy your judgment. The court can also impose a lien on the transferred asset in the hands of the transferee, or enter a money judgment against the transferee for the value of the asset received. The family member, business partner, or shell company that received the debtor’s assets can be held directly liable to you.

Who Can Be Sued: The Transferee’s Liability

Fraudulent conveyance law extends liability beyond the original debtor. The person or entity who received the fraudulently transferred assets can be sued directly and held liable for the value of what they received. The only protection for a transferee is that they took the asset in good faith and for reasonably equivalent value. A spouse who received the family home for no consideration cannot claim that protection.

Common Patterns We Encounter

In our practice, the most common fraudulent conveyance patterns include real property transfers to spouses or adult children shortly before or during litigation; bulk sales of business assets to related entities for below-market consideration; payment of excessive compensation or “loans” to owners on the eve of judgment; dissolution of the debtor entity followed by continuation of the same business through a new entity; and creation of new LLCs to receive business income while the old entity sits judgment-proof and empty.

The Statute of Limitations

Fraudulent conveyance claims in New York must generally be brought within six years of the date of the transfer, or within two years of when the creditor discovered or reasonably should have discovered the transfer, whichever is longer. If you suspect a debtor has transferred assets improperly, it is important to act before your claim to challenge those transfers expires.

What We Do When We Suspect Asset Concealment

When a client comes to us with a judgment against a debtor who appears to have no assets, our first step is investigation — public records, property ownership filings, UCC filings, corporate records, and information subpoenas to the debtor and related parties. From there, we build the voidable transaction claim, identify the appropriate defendants, and pursue recovery through the courts. We have pursued fraudulent transfers across Nassau County, Kings County, and beyond — and we know how to find assets that debtors try to hide.

Contracts are the foundation of every business relationship. When they are honored, business runs smoothly. When they are broken, the consequences can be financially devastating — unpaid invoices, lost profits, damaged business relationships, and sometimes the survival of the business itself. Here are five things every Nassau County business owner should know before pursuing or defending a breach of contract claim in New York.

1. The Four Elements You Must Prove

To prevail on a breach of contract claim in New York, a plaintiff must prove: (1) the existence of a valid and enforceable contract, (2) the plaintiff’s own performance of the contract or a legally valid excuse for non-performance, (3) the defendant’s material breach, and (4) damages resulting from that breach. Every element matters. The most commonly overlooked element is the second one — your own performance. You cannot sue someone for breach of contract if you yourself materially breached first.

2. The Statute of Limitations Is Six Years — And It Starts Running When You Might Not Expect

In New York, breach of written contract claims generally must be filed within six years of the date of breach. The critical issue is identifying exactly when the clock started. The breach date is not always the last missed payment — it may be the date the contract was repudiated, the date performance was due, or some other trigger. If you are approaching the five-year mark on an unpaid contract dispute, contact an attorney immediately to confirm whether your claim is still timely.

3. Your Contract Probably Has Critical Provisions You Have Never Read

Most business contracts contain provisions that become critically important in litigation: attorney’s fee provisions (which can shift legal costs to the losing party), limitation of liability clauses (which may cap damages below your actual losses), choice of law clauses, dispute resolution clauses (which may require arbitration), notice requirements (which may be required before asserting a breach), and merger clauses (which eliminate claims based on verbal representations made before signing). Before any breach of contract dispute reaches litigation, your attorney must read the entire contract — including the boilerplate.

4. You Have a Duty to Mitigate Your Damages

New York law requires plaintiffs in breach of contract cases to take reasonable steps to minimize their damages after a breach occurs. If a vendor breaches your supply contract, you generally cannot simply wait months while doing nothing — you are expected to find an alternative supplier at a reasonable price. If you fail to mitigate, the defendant can reduce the damages award by the amount that could have been avoided through reasonable efforts. This does not mean you have to take extraordinary steps, but “sit back and watch the damage accumulate” will hurt your recovery in court.

5. Summary Judgment Can Resolve Your Case Without Trial

Many Nassau County business owners assume that a breach of contract dispute requires a full trial to resolve. In many cases, it does not. New York courts allow a party to move for summary judgment when there is no genuine dispute of material fact and the moving party is entitled to judgment as a matter of law. In straightforward breach of contract cases where the contract is clear and the breach is documented, summary judgment can be obtained in months rather than the years that a full trial would take. At Aryeh Law Group, we build every case with summary judgment in mind from day one.

In the world of commercial finance and real estate, the personal guaranty is one of the most common — and most consequential — legal documents that business owners sign. It is also one of the most misunderstood. Many guarantors sign without fully appreciating what they have agreed to. And many creditors hold guaranties without understanding how to enforce them effectively.

What Is a Personal Guaranty?

A personal guaranty is a contract in which an individual (the guarantor) agrees to be personally responsible for a debt or obligation of another party (the principal debtor) if that party fails to perform. In commercial settings, personal guaranties typically appear in commercial lease agreements, business loan agreements, and vendor or supplier agreements. The purpose of a guaranty is straightforward: it gives the creditor a backstop against the risk that the primary obligor — typically a business entity — cannot pay.

How New York Courts Treat Guaranties

New York courts take personal guaranty agreements seriously and enforce them according to their terms. Unlike some other states, New York does not require a creditor to exhaust remedies against the primary debtor before pursuing the guarantor. Unless the guaranty itself contains a “guaranty of collection” language, the creditor can sue the guarantor immediately upon default by the primary debtor, without first attempting collection against the business.

For Creditors: How We Enforce Personal Guaranties

Enforcing a personal guaranty involves establishing the primary debtor’s default, demanding payment from the guarantor in compliance with any notice requirements, and filing suit in the appropriate court seeking judgment for the full guaranteed obligation plus any interest and attorney’s fees provided in the agreement. Because personal guaranty cases often involve clear documentary evidence, they are strong candidates for summary judgment. We pursue summary judgment aggressively in guaranty cases, seeking judgment quickly and moving to enforcement against the guarantor’s personal assets: bank accounts, real property, investment accounts, and employment income.

The Good Guy Guaranty: A Special New York Rule

In commercial real estate, New York has developed a unique type of limited guaranty known as the “Good Guy Guaranty.” Under a Good Guy Guaranty, the guarantor is personally liable for the tenant’s lease obligations only until the tenant vacates the premises and delivers them to the landlord in the required condition. Once the tenant vacates properly, the guarantor’s personal liability ends — even if there is remaining unpaid rent. Many guarantors fail to trigger the Good Guy clause properly and end up fully liable despite believing they were protected. Understanding exactly how to trigger this protection — and when it applies — requires careful legal analysis.

For Guarantors: Defenses to Guaranty Enforcement

If you have been sued as a guarantor, potential defenses include: the guaranty was not supported by adequate consideration; the creditor materially modified the underlying agreement without the guarantor’s consent; the creditor failed to give required notices; the guaranty is unenforceable under the Statute of Frauds; the guaranty has been discharged by payment or performance; or the guaranty’s scope does not cover the obligation being enforced. Defenses to guaranty enforcement are technical and fact-specific, and must be raised promptly and properly.

The COVID-19 Guaranty Waiver Issue

During the COVID-19 pandemic, New York enacted legislation temporarily waiving certain commercial lease guaranty obligations for small businesses. While most of those protections have expired, some cases involving guaranties from the 2020-2021 period may still involve questions about their applicability. If your guaranty dispute involves obligations from that period, it is important to have an attorney review whether any statutory waiver applies to your specific facts.